Government to End Key Economic Initiatives in Cost-Cutting Move
Finance Minister Dr. Cassiel Ato Forson has announced the government’s decision to discontinue the One District One Factory (1D1F) initiative, the YouStart programme, and the Ghana CARES “Obaatan Pa” initiative.
Speaking in Parliament during the 2025 Budget and Economic Policy presentation on March 11, he emphasized that this decision aligns with President John Mahama’s plan to eliminate unnecessary government spending.
“Mr. Speaker, we will cut waste, and we will do so significantly. As part of this effort, initiatives such as Ghana CARES, YouStart, and One District One Factory will be completely phased out,” Dr. Forson stated.
He further disclosed plans to transfer the responsibilities of development authorities—including the Coastal Development Authority, Northern Development Authority, and Middle Belt Development Authority—to district assemblies, eliminating these agencies altogether.
Additionally, he announced reforms to financial regulations:
- Amending the Petroleum Revenue Management Act to ensure that all Annual Budget Funding Amount (ABFA) resources are strictly allocated to infrastructure development.
- Revising the Public Procurement Act to introduce an independent Value for Money Office for overseeing government spending.
- Collaborating with Parliament to make budgetary provisions and commencement certificates mandatory for all central government-funded procurement.
The 1D1F initiative was launched in 2017 to promote industrialization and value addition in Ghana’s economy. The YouStart programme, introduced in 2022, aimed to support young entrepreneurs and generate jobs. Ghana CARES was rolled out in 2020 as a post-pandemic economic recovery plan.
With these changes, the government aims to streamline expenditures and focus on sustainable economic management.
